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Costco's (COST) Stellar Run Continues in March, Sales Up 17.6%
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Costco Wholesale Corporation’s (COST - Free Report) growth strategies, better price management, decent membership trends and increasing penetration of e-commerce business have been contributing to its upbeat performance. Cumulatively, these factors have been aiding this Issaquah, WA-based company in registering impressive sales numbers.
Costco’s strategy to sell products at discounted prices has helped draw customers, who have been seeking both value and convenience amid the ongoing crisis. Markedly, the company’s net sales increased 17.6% to $18.21 billion during five-week period ended Apr 4, 2021 from $15.49 billion in the last year. This followed an improvement of 15.2% and 17.9% in the months of February and January, respectively.
Given the current scenario, people have been shopping more at discount stores for essentials and other discretionary purchases. Apparently, Costco has emerged as viable option for them. The company’s differentiated product range resonates well with customers’ spending habits.
Solid Comps Performance
Remarkably, Costco’s comparable sales for the month of March rose 16%. This followed an increase of 13.8% and 15.9% in the months of February and January, respectively. The monthly comparable sales reflect an improvement of 13.9%, 28.3% and 16.4% in the United States, Canada and Other International locations, respectively.
Excluding the impacts from change in gasoline prices and foreign exchange, comparable sales for the month under discussion rose 11.1% on an improvement of 11.3%, 13% and 7.7% in the United States, Canada and Other International locations, respectively.
Management informed that this year’s five-week March retail month had one less shopping day when compared with the last year owing to a calendar shift for the Easter holiday. This hurt total and comparable sales by about one and one-half to two percent.
Online Sales: A Key Catalyst
Undoubtedly, Costco has been rapidly adopting the omni-channel mantra to provide a seamless shopping experience, whether online or at stores. Consumers’ increased shift to online purchasing owing to the coronavirus outbreak seems to have worked in favor of the company. It is also on track to provide curbside pickup facility to customers.
We note that e-commerce comparable sales surged 57.7% during the month of March. This followed an increase of 91.1% and 106.7% in the months of February and January, respectively. Costco operates e-commerce sites in the United States, Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.
Bottom Line
Costco continues to be one of the dominant warehouse retailers based on the expanse and quality of merchandise offered. It is also focused on ramping up investments in the wake of rising competition from the likes of Dollar Tree (DLTR - Free Report) , Dollar General (DG - Free Report) and Target (TGT - Free Report) . We believe that the company’s business model and commitment toward opening membership warehouses will continue to drive traffic.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.
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Costco's (COST) Stellar Run Continues in March, Sales Up 17.6%
Costco Wholesale Corporation’s (COST - Free Report) growth strategies, better price management, decent membership trends and increasing penetration of e-commerce business have been contributing to its upbeat performance. Cumulatively, these factors have been aiding this Issaquah, WA-based company in registering impressive sales numbers.
We also note that shares of this Zacks Rank #3 (Hold) company have advanced approximately 23.7% in the past year compared with the industry’s rally of 43.3%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stellar Sales Run Continue
Costco’s strategy to sell products at discounted prices has helped draw customers, who have been seeking both value and convenience amid the ongoing crisis. Markedly, the company’s net sales increased 17.6% to $18.21 billion during five-week period ended Apr 4, 2021 from $15.49 billion in the last year. This followed an improvement of 15.2% and 17.9% in the months of February and January, respectively.
Given the current scenario, people have been shopping more at discount stores for essentials and other discretionary purchases. Apparently, Costco has emerged as viable option for them. The company’s differentiated product range resonates well with customers’ spending habits.
Solid Comps Performance
Remarkably, Costco’s comparable sales for the month of March rose 16%. This followed an increase of 13.8% and 15.9% in the months of February and January, respectively. The monthly comparable sales reflect an improvement of 13.9%, 28.3% and 16.4% in the United States, Canada and Other International locations, respectively.
Excluding the impacts from change in gasoline prices and foreign exchange, comparable sales for the month under discussion rose 11.1% on an improvement of 11.3%, 13% and 7.7% in the United States, Canada and Other International locations, respectively.
Management informed that this year’s five-week March retail month had one less shopping day when compared with the last year owing to a calendar shift for the Easter holiday. This hurt total and comparable sales by about one and one-half to two percent.
Online Sales: A Key Catalyst
Undoubtedly, Costco has been rapidly adopting the omni-channel mantra to provide a seamless shopping experience, whether online or at stores. Consumers’ increased shift to online purchasing owing to the coronavirus outbreak seems to have worked in favor of the company. It is also on track to provide curbside pickup facility to customers.
We note that e-commerce comparable sales surged 57.7% during the month of March. This followed an increase of 91.1% and 106.7% in the months of February and January, respectively. Costco operates e-commerce sites in the United States, Canada, the U.K., Mexico, Korea, Taiwan, Japan and Australia.
Bottom Line
Costco continues to be one of the dominant warehouse retailers based on the expanse and quality of merchandise offered. It is also focused on ramping up investments in the wake of rising competition from the likes of Dollar Tree (DLTR - Free Report) , Dollar General (DG - Free Report) and Target (TGT - Free Report) . We believe that the company’s business model and commitment toward opening membership warehouses will continue to drive traffic.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%.
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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